NEW BEARISH Plays

New Oriental Education - EDU - close: 24.01 change: -0.49

Stop Loss: 24.75
Target(s): 22.00
Current Gain/Loss: unopened
Time Frame: exit prior to the July 17th earnings
New Positions: Yes, see below

Company Description

Why We Like It:
EDU is a Chinese education company. The stock recently broke down from its $25.50-29.00 trading range. Now the oversold bounce has failed. EDU looks ready to resume the decline. Shares should have support in the $22-21 zone.

I am suggesting a trigger to open bearish positions at $23.85 (just under today's low). Our target is $22.00.

Trigger @ 23.85

Suggested Position: short EDU stock @ (trigger)

- or -

buy the JUL $24 PUT (EDU1221S24) current ask $1.60

Annotated chart:

Entry on July xx at $ xx.xx
Earnings Date 07/17/12 (confirmed)
Average Daily Volume = 820 thousand
Listed on July 02, 2011